1 | Certificate in Financial Modelling and Valuation

Certificate in Financial Modelling and Valuation

Online Live 2020

2 | Certificate in Financial Modelling and Valuation

Why financial modellingand valuation?Finance professionals usually have to work with large volumesof numerical data. However, the key to successfully handle suchdata is the ability to organize and structure it meaningfullyto render it useful to them useful to senior managementfor decision making. This entails the creation of robust anddynamic financial models facilitating accurate and efficientanalysis of historical data and appropriate projection offinancial performance.

Once this has been done, the next step in the analysis offinancial data usually results in a valuation exercise. Thesignificance of valuation is appropriately quoted by WarrenBuffet in his statement — “If business schools could offer justone course, it would not be on stock trading, the efficientmarket hypothesis or modern portfolio theory. Rather,B-schools should be encouraging students to learn the boring,but critically important, discipline of business valuation.”

Valuation is required in various scenarios, some of which arelisted below:► Selling the business

► Settling corporate restructuring

► Resolving shareholders’ disputes

► Planning and decision making

► Determining tax obligations

► Funding from external sources

We have experienced that a robust and well-structured financialmodel is critical to achieving correct valuation analyses, whichin turn, fuel well-informed fuels well-informed and appropriatestrategic organizational decisions.

The importance of sound financial modelling skills, deepunderstanding of valuation methods and assessment ofoutputs of valuations for finance professionals should never beunderestimated!

About the program:

The candidates will learn to create efficient, robust and flexiblefinancial models to report and analyze historical data, preparefuture projections and present integrated financial statements,key financial ratios and outputs in a logical, summarized andeffective manner. The candidates will understand and applythese skills with the help of examples specially devised todemonstrate alternate ways to compute various financialparameters. The program also introduces the basicsof business valuation, various valuation methods andinterpretation of the results of valuation.

The learnings from these demonstrations and examples will befurther augmented by a holistic case study, which will coverall the modules taught. On completion of the program, thecandidates should be able to develop well-structured, robustand dynamic financial models to perform independent businessvaluation.

Who should attend?People with basic to intermediate skill of working with Excel andat the following levels are suitable candidates:

► Finance professionals working in investment banking andequity research

► Finance managers► Corporate finance, private equity and M&A professionals► CA, FRM, MBA finance and CFA program candidates

► Self-employed finance professionals Graduates•

Program contentPrograms in financial modelling and valuation are among themost sought after in the financial universe. This program isdesigned to cover all the major aspects of financial modelling,such as:

PrerequisiteBefore coming in for the face-to-face session, participantswill have to go through an 8-hour e-learning course ExcelBoot Camp. The access of the videos would be provided uponpayment of the registration fees.

Deliverables

CertificateOn successful completion of the program, participants will re-ceive a completion certificate based on clearing an assessment.

Delivery teamThe program would be delivered by a team of seniorprofessionals from member firms of EY global and industry,who have extensive experience in financial modelling andvaluation for various industries.

Cancellation and refundpolicyA full refund less an administration fee of INR 5000 will begiven for cancellation requests received up to 5 working daysbefore the training. Cancellations must be made via emailsonly, before 5 working days deadline. Delegates who cancel lessthan 5 working days before the training, or who don’t attend,are liable to pay the full course fee, and no refunds can begiven. However, if you wish to attend a subsequent schedulingof the course, and you have paid your course fee in full, thesame could be done subject to availability of the seats in thesubsequent batches. Replacement participants are alwayswelcome.

► Best practices► Structuring and designing models► Sector-specific working of revenue and expense► Understanding various possible ways to compute

different line items forming part of financialstatements

► Tax calculation► Integrating financial statements to present a

cohesive output Building macros► Various approaches to valuation and how to apply

them► Presentation of output in an appealing as well as

meaningful manner

► 42 hours of online live sessions► 8 hours of pre-recorded videos for Excel Boot Camp

via EY LMS ► EY material in soft copy ► 12 Months access to EY‘s e-learning course on financial

modelling with session videos on all the topics covered in the classroom

► Practice material► Intermediate quizzes to assess participants’

progress► Case-study approach

4 | Certificate in Financial Modelling and Valuation

Program fees

INR15,000+ applicable taxes per

participant.

Program schedule and contact persons

Training programs are subject to a minimum number of participants. If atraining program does not meet this criteria, then EY FAAS Learning Solutionis entitled to cancel it at its discretion, without liability. In such instances, theEY FAAS Learning Solution team can offer the participants alternative optionsor a refund as applicable.

About EY Learning SolutionsIn today’s testing business environment, with organizational transformation and regulatory change constant features, a flexibleand cost-effective workforce is critical. High-quality training is a crucial element of innovative talent management, to improveperformance and ensure your teams can respond to today’s challenges, and are equipped for career success. We, at EY FAAS,realized this need and accordingly we have set up a dedicated “Learning Solution” practice to help corporate and practicingprofessionals to deal with new requirements. FAAS Learning Solutions supplements EY’s primary range of services and providebusiness-specific training solutions for our clients and business communities throughout India, Europe, the Middle East andAfrica. This is done with the help of a multidisciplinary team of trainers from around the world. As a globally integrated firm, webring global insight to our training programs. All training programs are regularly updated to reflect changing trends and guidance.Our practical, relevant and stimulating courses are facilitated by highly competent trainers who have first-hand knowledge of thesubject matter. We recognize that each client will have a different history, size, location and sector; therefore, programs can betailored to specific needs of your business.

Location Mode and Dates Contact Person

Online

Online Live sessions Batches starting in:- April 2020May 2020June 2020

Name – Sugandha Sharma Email Address – Sugandha.sharma@in.ey.com Contact Number –+91 98992 21891

5 | Certificate in Financial Modelling and Valuation

A Overview of financial modellingand best practices

1 Difference between financial models and spreadsheets

2 Financial model structure — Flow of the model, decidingon the order in which sheets should be prepared andpresented

B Warm up

3 Creating a template for the financial model4 Setting up scenario manager

5 Setting timelines, flags and counters

C Building financial statements

6 Developing P&L, balance sheet and cash flows — Lineitems and drivers

7 Understanding contra accounts

8 Constructing revenue items

9 Expenses — Fixed costs (rent, insurance, electricity andutilities etc.)

10 Expenses — Variable costs (employee costs, power andfuel, advertising and marketing etc.)

11 Quiz 1

D Fixed assets and depreciation

12 Tangible fixed assets account — Break-up, capitalexpenditures, asset lives, impact of foreign exchangetranslation

13 Treatment of intangible fixed assets

14 Depreciation and amortization - straight-line method,written-down value method, units of production methodand other methods

E Capital structure

15 Capital structure and introduction to debt modelling— Types of structures, types of debt, types of equity,treatment of grant, reviewing terms of debt

16 Setting up inputs, flags and counters for debtcalculations (considering repayment pattern,moratorium, etc)

17 Setting up priority of payments and arriving at therepayment profile for debt when there are multipledebts in the project (senior debt, sub-debt etc.)

18 Understanding sculpted repayments

19 Modelling to check for debt covenants

20 Understanding the debt service reserve account (DSRA)and setting it up

21 Construction cost, timeline and delays in infrastructureprojects

22 Equity schedule — Share repurchase and options

F Working capital

23 Modelling of working capital24 Quiz 2

G Tax

25 Tax calculations (Income tax and minimum alternatetax)

H Outputs: Integrating financial statementsand outputs

26 Integrating the financial statements — Preparing P&Laccount, balance sheet and cash flow statement

27 Handling aggregation, consolidation and switches whenthere are multiple assets and/or entities

28 Building flexibility to evaluate sensitivities on variousparameters

29 Calculation of key ratios and margins

30 Goal seek

31 Setting up checks in the model

32 Incorporating overrides for various assumptions

33 Introduction to charts — Simple charts

34 Introduction to charts — Advanced charts

35 Creating dashboards that present the key assumptionsand outputs of the model in a meaningful and decision-oriented manner

36 Quiz 3

Agenda: Face-to-face sessions

6 | Certificate in Financial Modelling and Valuation

12 Filter data

13 Unprotect/Protect sheet/workbook

B Exploring Excel functions

14 Mathematical functions

15 Statistical functions

16 Financial functions

17 Logical functions

18 Lookups and reference functions19 Text functions

20 Date and information functions

C Exploring Excel tools

A Exploring Excel

1 Understanding Screen of Excel 2010/2012

2 Ribbon and various tabs on the ribbon

3 Formulae bar

4 Copy, paste with paste special

5 How to use Quick access toolbar and creating ownshortcuts

6 Basic shortcuts

7 Find/ Replace with wildcards (*,?),

8 Cell Formatting (Ctrl + 1) with Custom formatting9 Cell Styles

10 Conditional Formatting

11 Sorting data

I Introducton to valuation

37 Introduction to valuation concepts — PV, NPV, IRR, FCFF,FCFE etc.

38 Introduction to valuation methods - Discounted cashflow method, difference between NPV and XNPV, IRRand XIRR formulas,

39 Introduction to valuation methods — Comparablecompanies methods (trading multiples and transactionmultiples)

40 Introduction to valuation methods — Book value method(net asset value [NAV] and adjustments to NAV)

41 Detailed understanding of discounted cash flow methodand calculation of WACC

J Case study

42 Introduction to the case study — XYZ Limited

43 Setting up P&L related inputs for XYZ limited - revenueand expenses

44 Calculating adjusted EBITDA and pro forma EBITDA forXYZ Limited

45 Setting up balance sheet related inputs for XYZ Limited— Capital structure, capex and depreciation, debt

46 Setting up P&L and balance sheet related calculationsfor XYZ Limited

47 Tax calculations for XYZ Limited

48 Setting up the cash flow statement and integratedfinancial statements for XYZ Limited

49 Setting up model checks for XYZ Limited

50 Setting up sensitivities for XYZ Limited

51 Modelling for synergies

52 Accounting for synergies present in acquiring XYZLimited

53 Valuation of XYZ Limited as per the discounted cashflow method

54 Calculation of other valuation metrics used ininvestment decisions — Payback period, industry-specific metrics etc.

55 Creating a user-friendly dashboard for XYZ Limited56 Benchmarking valuation of XYZ Limited using other

valuation methods

Agenda: Face-to-face sessions (cont’d)

Agenda: Recorded videos

7 | Certificate in Financial Modelling and Valuation

Darshan Nareshkumar KharadiSahajanand Medical Technologies Pvt. Ltd

Minesh KumarHiron International LLC

S. Bujji BabuPosition2 Marketing Pvt Ltd.

Overall, it was a good learning for me, before thiscourse, I was just working on spreadsheets and myassumptions were manually linked to end results. Now,I can prepare model as per learning and it is helpful formy company / Board to conclude various cases withinshort time span.

I have learned new shortcut keys and new formula forworking excel and scenario.

The sessions are full of practical examples. Overall thetraining was good and innovative.

Voice of Participants

8 | Certificate in Financial Modelling and Valuation

Our other offerings/programs

Ind-AS MasterClass

EY IFRS Course Finance forNon-FinanceManagers

Certificate inLean Six SigmaGreen Belt

Classroom Training

Finance forNon-Financemanagers

Certificate inLean Six SigmaGreen Belt

Certificatein FinancialModelling andValuation

Certificate inInternal FinancialControl

Certificatein Ind-AS

E-Learning Program

Certificate inadvance analyticsusing R

Workshop on CompaniesAmendment Act &Ind-AS

Mohd. Furqan WarsiDirector, FAASEmail: furqan.warsi@in.ey.com

Anand AkhouriAssociate Director, FAASEmail: anand.akhouri@in.ey.com

About EYEY is a global leader in assurance, tax, transaction and advisoryservices. The insights and quality services we deliver help buildtrust and confidence in the capital markets and in economies theworld over. We develop outstanding leaders who team to deliveron our promises to all of our stakeholders. In so doing, we play acritical role in building a better working world for our people, forour clients and for our communities.

EY refers to the global organization, and may refer to one or more,of the member firms of Ernst & Young Global Limited, each ofwhich is a separate legal entity. Ernst & Young Global Limited, a UKcompany limited by guarantee, does not provide services to clients.For more information about our organization, please visit ey.com.

Ernst & Young Associates LLP is one of the Indian client servingmember firms of EYGM Limited. For more information about ourorganization, please visit www.ey.com/in.

Ernst & Young Associates LLP is a Limited Liability Partnership,registered under the Limited Liability Partnership Act, 2008 inIndia, having its registered office at 22 Camac Street, 3rd Floor,Block C, Kolkata - 700016

© 2018 Ernst & Young Associates LLP. Published in India.All Rights Reserved.

EYIN1801-010ED None

This publication contains information in summary form and istherefore intended for general guidance only. The informationmentioned in the publication are derived from public sourceswhich we believe to be reliable and accurate but which, withoutfurther investigation cannot be warranted as to their accuracy,completeness or correctness. This information is supplied onthe condition that neither Ernst & Young Associates LLP norany other member of the global Ernst & Young organization arenot liable for any error or inaccuracy contained herein, whethernegligently caused or otherwise, or for loss or damage suffered byany person due to such error, omission or inaccuracy as a result ofsuch a supply It is not intended to provide any advice and nor bea substitute for detailed research or the exercise of professionaljudgment. Neither Ernst & Young Associates LLP nor any othermember of the global Ernst & Young organization can accept anyresponsibility for loss occasioned to any person acting or refrainingfrom action as a result of any material in this publication. On anyspecific matter, reference should be made to the appropriateadvisor. If any party chooses to rely upon any of the contents of thisPublication they do so entirely at their own risk, and we shall haveno responsibility whatsoever in relation to any such use. We acceptno duty of care or liability of any kind whatsoever to any such party,and no responsibility for damages, if any, suffered by any such

party as a result of decisions made, or not made, or actions taken,or not taken, based on this publication.

KL

Ernst & Young Associates LLPEY | Assurance | Tax | Transactions | Advisory

ey.com/in

@EY_India EY|LinkedIn EY India EY India careers ey_indiacareers